Yazrin Syakhairi, the Malaysian Trade Commissioner, under the Trade Section of the Consulate General of Malaysia in Hong Kong (MATRADE), has predicted that the global Islamic finance market would reach $4.9 trillion by 2025.
Speaking on the sidelines of the Asian Financial Forum (AFF) in Hong Kong, Syakhairi told the Emirates News Agency (WAM) that the Islamic finance market is witnessing significant and rapid growth worldwide, driven by the trend towards green and ethical finance.
The Comissioner also stressed the rise of financing tools such as Sukuk or Islamic bonds which can then be listed on financial markets in Hong Kong, Dubai, and Kuala Lumpur.
Islamic finance is a system that operates in accordance with Islamic law and principles. Over the past four years, assets in Islamic banking have surged from $1.8 trillion to $2.8 trillion in 2023 and are expected to grow by around 10% by the end of 2024, according to earlier estimates by Standard Poors Global Ratings.
Gulf Cooperation Council (GCC) nations are already playing a pivotal role in the growth of the sector. In 2022 alone, the region spurred 92% of the growth in Islamic banking assets, with Saudi Arabia and Kuwait as the industry leaders.
Syakhairi stressed that recent statistics indicate a noticeable growth in the size of this industry in the Middle East and the Association of Southeast Asian Nations (ASEAN), and highlighted the close trade relations between Malaysia and the UAE.
The two nations have recently signed a Memorandum of Understanding (MoU) Â to boost digital infrastructure development, with a specific emphasis on the building of data centres in Malaysia.
